Weaker trading for 2 Cheap

2 Cheap Cars has announced its unaudited management accounts show the company made a net profit after tax (NPAT) of about $320,000 in July this year. 

This brings unaudited NPAT for the first four months of the 2027 financial year to about $1.99 million. 

Michael Stiassny, chairman, says last month’s result is consistent with the company’s August 4 update that trading during July had been weaker than the first quarter, with the lower result primarily reflecting reduced vehicle sales volumes and average margins.

“The company would not ordinarily provide a trading update based on a single month’s performance and is providing it in the context of currently being subject to a takeover offer and to keep shareholders updated during this time,” he adds. 

“The board cautions that the results for any individual month, or other short period, do not provide a reliable basis from which to extrapolate the company’s performance for the remainder of the financial year. 

“Trading conditions remain volatile, and the company is not providing FY27 earnings guidance.”

New branch

Stiassny’s trading update to the NZX on August 14 also notes recent retail developments with 2 Cheap Cars opening a new branch in Henderson, Auckland, at the beginning of the month. 

The dealership, pictured, is intended to replace 2 Cheap Cars’ Penrose operation, which is closing in September due to the landlord’s planned redevelopment of the site. 

“The replacement of Penrose had been contemplated in the company’s FY27 planning and the Henderson opening does not represent a planned net increase in the company’s retail footprint,” explains Stiassny. 

“Additional capacity remains available at the company’s Sylvia Park site, and the company believes its footprint is appropriately aligned with current operational output. 

“The company will continue to review its retail footprint having regard to market conditions, operational capacity and expected returns.”